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How to Write a Retail Store Business Plan [Sample Template]

Are you about starting a retail business? If YES, here’s a complete sample online retail store business plan template & feasibility report to help you get started. Okay, so we have considered all the requirements for starting a retail store. We also took it further by analyzing and drafting a sample retail store marketing plan template backed up by actionable guerrilla marketing ideas for retail stores. So let’s proceed to the business planning section.

Why Start a Retail Store?

There are times when one might not be disposed to buy stuff in bulk. This might be due to financial constraint or other contingencies. This is one of the reasons why retail outlets are scattered all over the world. They know the importance of reaching all and sundry, and that is why they want to provide services that can reach all classes of people.

Those who are already in the trade know the huge profit levels which they attain always. If you have decided to start a retail business, then good news is that you are in a profitable trade, as nearly all the type of goods that are being dealt in is such that is important to all

A Sample Retail Store Business Plan Template

1. industry overview.

When we talk about retailing, we talk about a business that deals in loads of consumer goods; which can be categorized into three major areas. These categories are: general merchandise, apparel, and furniture. In other words, retailers are engaged in the selling of finished goods; they get the goods from the manufacturers and they sell to the end users (consumers).

Retail goods can also be categorized into durable goods and non – durable goods. Durable goods are goods such electronics, computers and accessories, furniture, and other large appliances et al and non – durable goods are good such as food, toiletries, drinks, beauty products, jewelry, clothing and shoes et al.

The retail industry is a major sector of the economy of the united states which generates a whooping sum of well over trillion annually from more than a million retail outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 15 million people which is about 12% of the workforce of the U.S. eMarketer.com published that in 2014 alone, the retailing industry on a global scale generated a revenue of well over $22 trillion; it goes to show that the industry is indeed a very large industry.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S. In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing industry negatively which may result in the closure of some retail stores.

In recent time, the retail landscape has seen tremendous changes in the last 20 years; it has grown from the usual mom and pop outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical store is located.

It is interesting to note that more retail shops; especially lager retail outlets have started to include self-serve checkout lanes in their stores. It creates shorter lines that appeal to consumers; the average customer would not want to stay longer on queue.

Over and above, the retail industry is a profitable industry and it is open to any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets in key cities.

2. Executive Summary

People’s Choice Retail Shop is a retail shop that will be located in one of the busiest streets in Columbus, Ohio. We have been able to lease a facility that is big enough to fit into the design of the retail shop that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Columbus, Ohio.

Our retail shop will retail a wide range of durable goods and non – durable goods at affordable prices from different brands. We retail goods such as groceries, clothes, sports equipment, beauty products, jewelry, baby stuffs, children’s toys, home furnishings and home appliances et al.

We are aware that there are several large and small retail outlets all around Columbus, which is why we spent time and resources to conduct our feasibility studies and market survey, so as to offer much more than our competitors will be offering. We have sell service options for our customers, and our outlet is well secured with the various payment options.

Much more than selling the goods and products of top brands in the manufacturing industry, our customer care is second to none in the whole of Columbus, Ohio. We know that our customers are the reason why we are in business, and that is why we will go the extra mile to get them satisfied when they visit our retail shop and also to become our loyal customers and ambassadors.

People’s Choice Retail Shop will ensure that all our customers are given first class treatment whenever they visit our shop. We have a CRM software that will enable us manage a one on one relationship with our customers, no matter how large the numbers of our customers base. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when make some business decisions.

We are aware of the trend in the retail industry and we are not only going to operate a system where our customers would have to come to our shop to make purchase or whatever they want but we will also operate an online store and our customers can order goods online and they will get it delivered to their houses or any location they want us to deliver the goods to within Ohio.

People’s Choice Retail Shop is a family business that is owned by Bob Wesley and Family. Although the business is launching out with just one outlet in Columbus, Ohio, but there is a plan to open other outlets all around Ohio.

3. Our Products and Services

People’s Choice Retail Shop is in the retailing industry and we will ensure we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We will have available in our store a wide range of durable goods and non – durable goods at affordable prices. We retail goods such as groceries, clothes, sports equipment, beauty products, jewelry, children’s toys, baby stuffs, home furnishings and home appliances et al.

4. Our Mission and Vision Statement

• Our vision is to establish a one stop retail shop in Columbus, Ohio and in other cities in Ohio.
• Our mission is to establish a retail business that will make available a wide range of goods and products from top manufacturing brands at affordable prices to the residence of Columbus, Ohio and other cities in Ohio.

Our Business Structure

People’s Choice Retail Shop do not intend to start a retail business like the usual mom and pop business around the street corner; our intention of starting a retail business is to build a standard retail outlet in Columbus, Ohio. Although our retail business might not be as big as Wal-Mart or Marcy, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Store Manager:

• Responsible for managing the daily activities in the restaurant
• Ensures that the store facility is in tip top shape and conducive enough to welcome customers
• Interfaces with third – party providers (vendors)
• Controls the sales floor inventory
• Ensures that goods and products are properly arranged
• Supervises the entire sales staff and workforce
• Any other duty as assigned by the CEO
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of goods and products on our rack
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Receives payments on behalf of the organization
• Issues receipt to customers
• Prepares financial report at the end of every working week
• Handles all financial transaction on behalf of the company
• Interfaces with our bankers
• Responsible for payment of tax, levies and utility bills
• Any other duty as assigned by the CEO / store manager
• Responsible for cleaning the store facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Any other duty as assigned by the restaurant manager,

6. SWOT Analysis

Our intention of starting just one outlet of our retail store in Columbus, Ohio is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over Ohio. We are quite aware that there are several retail stores all over Columbus and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

People’s Choice Retail Store employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for People’s Choice Retail Store;

Our location, the business model we will be operating on (physical store and online store), varieties of payment options, wide range of products and our excellent customer service culture will definitely count as a strong strength for People’s Choice Retail Store.

A major weakness that may count against us is the fact that we are a new retail outlet and we don’t have the financial capacity to compete with multi – billion dollars retail outlets like Wal-Mart and co when it comes to retailing at a rock bottom prices for all their goods.

• Opportunities:

The fact that we are going to be operating our retail store in one of the busiest streets in Columbus, Ohio, provides us with unlimited opportunities to sell our goods to a large number of people. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our retail outlets; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new retail outlet in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Retailing business has been in existence for as long as humans started trading goods, but one thing is certain, the retailing industry is still evolving. The introduction of technology and subsequently online retail store has indeed helped in reshaping the industry.

It is now a common phenomenon for retail outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help retail shops serve them better.

Another common trend in the retailing industry is the pricing system. Aside from having varieties of products in a store, one of the easiest ways for retail stores to sell the goods on their racks as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable elsewhere. For example; it is common to see items with prices in this format; $3.99, $99 and $199 et al as against $4, $100 and $200.

Retailers also engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

Perhaps the retailing industry has the widest range of customers; everybody on planet earth has one or more things that they would need in a retail shop. It is difficult to find people around who don’t patronize retail shops.

In view of that, we have positioned our retail store to service the residence of Columbus, Ohio and every other location our retail stores will be located all over Ohio. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of products to the following groups of people;

• Corporate Executives
• Business People
• About to wed couples
• Expectant Mothers
• Sports Men and Women

Our Competitive Advantage

People’s Choice Retail Store is launching a standard retail shop that will indeed become the preferred choice of residence of Columbus, Ohio. Our retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Columbus, Ohio. We have enough parking space that can accommodate well over 100 cars per time.

One thing is certain; we will ensure that we have a wide range of products available in our store at all times. It will be difficult for customers to visit our store and not see the product that they are looking for. One of our business goal is to make People’s Choice Retail Store a one stop shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

9. SALES AND MARKETING STRATEGY

• Sources of Income

People’s Choice Retail Shop is in business to retail a wide range of products to the residence of Columbus, Ohio. In essence, our source of income will be the retailing of a wide range of durable goods and non – durable goods at affordable prices. We will retail goods such as groceries, clothes, sports equipment, beauty products, jewelry, children’s toys, baby stuff, home furnishings and home appliances et al.

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. One thing is common with retailing business, the larger a retail store the larger the numbers of customers that will patronize them.

Although we may not be as large as Wal-Mart, but we will ensure that within our capacity we make available a wide range of goods from different manufacturing brands in our retail outlet. Below are the sales projections that we were able to come up with for the first three years of operations;

• First Year-: $200,000
• Second Year-: $450,000
• Third Year-: $700,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for People’s Choice Retail Store, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Columbus, Ohio. We have a detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Columbus, Ohio. In order to continue to be in business and grow, we must continue to sell the products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver.

In summary, People’s Choice Retail Store will adopt the following sales and marketing approach to win customers over;

• Introduce our business by sending introductory letters to residence, business owners and organizations
• Promptness in bidding for contracts
• Advertise our business in community based newspapers, local TV and radio stations
• List our business on yellow pages ads
• Leverage on the internet to promote our business
• Direct marketing
• Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our retail store. People’s Choice Retail Store has a long term plan of opening outlets in various locations all around Ohio which is why we will deliberately build our brand to be well accepted in Columbus before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise People’s Choice Retail Store;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around Columbus, Ohio
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our retail store is located.

12. Our Pricing Strategy

Pricing is one of the key factors that give leverage to retail stores, it is normal for consumers to go to places (retail outlets) where they can goods at cheaper price which is why big player in the retail industry like Wal-Mart will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with Wal-Mart or any other big retail store, but we will ensure that the prices of all the products that are available in our store are competitive with what is obtainable amongst retail stores within our level.

• Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Ohio – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of People’s Choice Retail Store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Consultant – $2,500 .
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of products) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• Cost for serving area equipment (plates, glasses, flatware) – $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000 .
• The cost of Launching a Website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $500,000 to successfully set up our retail store in Columbus, Ohio. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for People’s Choice Retail Store

People’s Choice Retail Store is a private business that is solely owned and financed by Bob Wesley and family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

People’s Choice Retail Store will ensure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – suppliers of all our needed raw materials: In Progress

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Retail Business Plan Executive Summary

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Matthew Hudson is the author of three books on retail sales and has nearly three decades of experience in the industry.

One of the most important aspects of any small business is to have a well-thought-out, strategic business plan. In my retail consulting , I find that less than 10% of independent retailers have an actual business plan. And those that do, it's because the bank required them to write one to get a loan. 

It's no wonder over half of all small businesses and retailers fail within the first three years—they have no plan. Sure, they have an idea and it might even be a great idea. And they have passion and they have the drive, but lacking a written plan, they have no map. Just like any destination, you need a road map to get there. In today's technology-driven society, we have become people of shorthand and cutting corners. We devalue the idea of a business plan; it takes too much time to write and develop and we want to get started NOW. 

The executive summary of a business plan is the "1-pager" of your idea. It challenges you to articulate your vision into one or two pages. If it takes 10,000 words to explain your vision for a retail store, it will never work. If it can be distilled eloquently in a page, then it has a chance. We call this page, the executive summary of the business plan. 

The executive summary features the highlights of the entire business plan. It grabs the reader's attention, explains who and what this business is all about and why he or she should continue reading. Just like the headline in an advertisement, the summary needs to make the reader desire to know more. 

What to Include:

When writing the executive summary, be sure to include the following:

• Business name and location
• Business concept
• The purpose of the business plan
• How and what products/services you plan to sell
• Projected sales and profits
• Who will operate the business
• What need you are trying to fill in the marketplace or What problem you are trying to solve for customers
• Any fact or news you don't want overlooked

Remember that this is a summary so be sure to offer a synopsis of each section of your business plan. However, just like the cover letter of a resume, it could be the only part of your plan ever read -so make sure you've included the most important points. Write to engage the reader and keep the tone positive and upbeat, but not lofty. It needs to be realistic. The executive summary should be no more than one or two pages. Remember, if you cannot attract the reader's attention in that amount of words, then you will have a bigger problem attracting the customer's attention.

After you have written your executive summary, share it with some friends. See if they can garner your vision from reading. Do they have a ton of questions? Do they have a lot of doubt? It may not be your vision, but your ability to articulate it. 

While it appears at the beginning of the business plan, it is recommended to write this part last. Spend your time agonizing over the idea, the strategy, and the details and then write the summary. It will help you craft a more compelling vision. 

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Retail Dogma

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RETAIL EDUCATION & TRAINING SOLUTIONS

Retail Business Plan

A retail business plan is a document that gives you and your potential investors a roadmap on how your new retail business intends to get started and deliver its business goals over its initial few years (usually 5 years).

It is usually broken down into sections about the company, the industry it operates in, the competition it will face and a plan that covers marketing, financials and operations over the first few years in business.

Also check out this one-page Business Model Canvas for a retail business .

Retail Business Plan Template

You can download this free retail business plan template from the link below. You will be able to edit the word file and export it into PDF format afterwards.

In the coming sections, we will explain the different components that go into the retail business plan, which you can then apply to your own plan when completing the template.

Check out more free downloads .

Executive Summary

We recommend writing the executive summary at the end of the process, after you have filled out all the other sections in the retail business plan template.

In the executive summary you will cover the following points briefly:

• Types of products sold at the store
• Customers served by the store
• Company mission & vision
• Market share to be captured

You will also mention the total amount you will need to start this business, backed by the financial plan you prepared as part of this business plan.

The total amount that you want to borrow or have invested in your business will be the sum of pre-opening costs (initial inventory, equipment, rent,..) and the maximum negative cash flow as per your cash flow plan.

If you are writing this retail business plan for a financial institution to get a loan, mention how you expect to repay the loan, and you should have already included the loan installments in your financial plan.

If you are writing this plan for investors, mention how much equity they will receive in return for this investment and the expected return on investment, and expected cash distributions (dividends) based on your financial plan.

For example

An investment of 100,000$ in the business will result in the investor receiving 20% equity. We plan to distribute 50% of the profits every year, and based on our financial projections this will be a xx,xxx$ in the first year, xx,xxx$ in the second year, and xx,xxx$ in the third year,..etc.

Company Overview

Here you will write about your business and give a brief overview about the type of store you will be starting.

You can cover the following points:

• Store category (e.g. beauty store, toy store)
• Store location and brief description of the area
• Product categories carried
• Company legal structure

Industry Overview

Write an overview about the industry (retail/ecommerce) as a whole and the most recent trends specific to this industry.

Cover areas such as:

• Total retail sales
• Contribution of your retail category to the total sales (size of the market)
• Online vs. Brick & Mortar trends
• Recent industry trends and shifts in terms of products you are selling

You can find the most recent insights about retail in our Retail Statistics page.

Read Also: What is Retail ?

Target Market

Write about your target customers that you know will be interested in your products. Mention demographic and psychographic details in this section. This will help afterwards in drafting your marketing plan.

You can cover the following details:

• Age bracket
• Income level
• Educational level
• The specific needs that your products will fill for them

FOUNDATIONS OF MARKETING

• Learn the fundamentals of marketing
• See how they apply to buying, merchandising & pricing
• Real-life case studies and examples

Competition

List the current competition in the market that are serving your target customers. Mention your top 3 competitors in your area.

You can also include indirect competition, such as online stores or marketplace sellers, if you think this might affect your business.

Cover information about:

• No. of stores
• Size of stores
• Product categories they sell
• Pricing level
• Sales per day estimates
• Strengths & Weaknesses

You can also create a summary table like the one below

Competitive Advantage

What will make customers leave the competition and come to you? Use the weaknesses areas that you mentioned about the competition in the previous section, and mention how you will improve on them.

This could be by:

• Superior quality
• Better prices
• Convenience
• More variety
• Better shopping experience

Marketing Plan

Describe your marketing strategy for your store and which channels you are going to use.

Cover the following areas:

• Brand Positioning
• Branding Strategy (Persona, tone, language,..)
• Product Strategy (Key products and product features that will attract your customers)
• Pricing Strategy
• Promotional Strategy
• Marketing Channels

Operations Plan

Write how you will operate your store and include details about your manpower plan.

This will include the management that you will hire for the store, visual merchandisers, sales staff and cashiers.

Cover the following:

• Management structure (store manager, supervisor,..)
• Staff plan (3 sales associates, 2 cashiers, etc.)
• Brief role descriptions
• Compensation structure

Read Also: Retail Scheduling

RETAIL OPERATIONS MANAGEMENT

• Managing Store Operations
• Areas of Responsibility
• Assessing & Managing Performance

Financial plan

List estimates for the capital you will need to start and financial projections for the following years.

Capital Needed

Start with how much capital you will need to start the business

This will include:

• Initial rent
• Initial product order (Inventory)
• Initial staff salary
• Store fixtures
• Store equipment

Read Also: How Much Capital You Will Need For a New Retail Store?

Financial Projections

Include a 5-year financial projection for the business based on your forecasted sales and costs.

• Monthly income statement (P&L) for the first year
• Yearly income statement for the following 4 years
• Monthly cash flow projection for the first year

Learn how to create a sales budget for a new store, and 3 years financial projections in our Retail Budgeting Course

RETAIL BUDGETING & PLANNING

• The step by step retail budgeting process
• Set monthly targets adjusted to seasonality
• Templates download & practice exercise

Break Even Point

Include a snapshot of the 5-year P&L plan here and mention the SPD (sales per day) you need to breakeven, based on your P&L numbers.

We have created a sample table with retail data in the business plan template, and you can fill it with your own numbers.

Key Assumptions

Mention the assumptions you used for creating your financial projections.

For example , you assumed that sales per day for the first year will be 1000$ and then will grow by 20% in the second year, 15% in the third year and 10% in the fourth year, etc.

Retail Business Plan Tips

Sales projections.

We recommend being very realistic about your initial sales per day projections, as your entire financial plan will be directly affected by it.

When you then forecast your growth for the coming years, you should also be realistic about how much you will grow year-on-year.

From our experience, retail stores typically see higher growth after the first year and then this starts to level off from the third year onwards.

Having said that, there might be other growth drivers that can affect your business and accelerate your growth in the following years. This could be for example that your new store is in an area that is still under development and will be fully developed by the third year.

What we want to say is, do your due diligence thoroughly and based on that set realistic expectations.

Inventory Projections

The biggest asset you will hold and the biggest part of the investment/loan you will need to start your retail business will go for inventory.

So it is important to calculate your inventory needs correctly.

This will be based on your sales forecasts and the inventory turnover rate you expect or the forward stock cover you intend to maintain.

For example, if your inventory turnover target is 2, this means you maintain a 6 months cover. If your inventory turnover is 3, you maintain 4 months stock cover,..and so on.

We recommend checking out the benchmarks we have listed for different retail categories for inventory turnover and reading our complete Open to Buy guide to get started with calculating exactly how much inventory you will need.

Good luck in your new venture!

THE PROFESSIONAL RETAIL ACADEMY (PRA) ™

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• Learn the best practices of the industry
• Download ready-to-use professional templates
• Get certificates of completion for each course
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More Resources

Thank you for reading this article on Retail Business Plan. We recommend the below free resources as well:

• Retail Management
• Starting a Retail Business
• Buying a Retail Business

Join the academy and get all access to all our resources, which will help you manage your retail business more efficiently.

CONNECT THE DOTS

Learn how to manage a retail business end-to-end.

We’ve put together a curriculum, specifically designed for retail owners or retail professionals who want to advance into senior management roles.

Learn how to connect the dots of the business and take the basic knowledge to the next level of application . 

Grocery Store Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Grocery Store Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Grocery Store Plan Here

Grocery Store Executive Summary

Business overview.

Freshley’s Grocery Store is a locally established grocery store located in Des Moines, Iowa.

The store is founded by married couple Dan and Jan Walters, two Des Moines natives who  have worked the past five years for local farms assisting them in the packaging and selling of their meat, poultry, produce and dairy items. As the population of Des Moines continues to increase and the demand for locally-sourced meat, cheese, and produce rises, Dan and Jan saw an opportunity for a neighborhood grocery store that specializes in locally-sourced products straight from Iowa farms.

Freshley’s Grocery Store will also sell beverages, baked goods, and grocery items to fit all budgets. It will be a one-stop destination for anyone to stop and get all the grocery items in one place for their household. It will be located on a main thoroughfare in the middle of town that is easily accessible to all residents of Des Moines, whether they live in the city or on the outskirts of town. Pricing will be on par with competitors and they will run monthly and weekly specials on select grocery items they happen to have an excess supply of. Freshley’s Grocery Store will also offer a membership club for frequent visitors to redeem points for discounted items.

Product Offering

The following are the products to be offered by Freshley’s Grocery Store:

• Meat & Seafood
• Bread & Bakery Items
• Dairy, Eggs & Cheese
• Frozen Foods
• Wine, Beer & Spirits
• Cookies, Snacks & Candy
• Breakfast & Cereal
• Canned Goods & Soups
• Condiments & Spices
• Grains, Pastas & Sides

Customer Focus

The customer focus for Freshley’s Grocery Store will be all residents living in and around Des Moines, Iowa. They will be from all walks of life, whether they are blue collar, white collar, a university student, or city employee.

Management Team

Dan and Jan Walters are the owners and managers of Freshley’s Grocery Store. They will be the points of contact with all the partnership farms, handle all inventory, scheduling, marketing and employees. Dan and Jan will work at the store every single day until stabilization and plan to appoint one of the hourly employees to a manager after three months. This employee manager will oversee the staff of the store on the one day a week Dan and Jan plan to take off from work once the store is stabilized.

Success Factors

Freshley’s Grocery Store is primed for success by offering the following competitive advantages:

• Freshley’s will carry the freshest and highest quality meat, produce, poultry and dairy in town as it will be locally sourced from Iowan farms.
• Competitive pricing and membership rewards program.
• Ultra-convenient location for all residents in and out of Des Moines.

Financial Highlights

Dan and Jan Walters are seeking $185,000 in debt financing to open its grocery store location in Des Moines, Iowa. The funding will be dedicated for leasehold improvements, design, working capital, marketing and opening inventory. The breakout of the funding is below:

• Store design/build: $50,000
• Opening inventory: $100,000
• Working capital: $25,000
• Marketing promotions: $10,000

The following graph below outlines the pro forma financial projections for Freshley’s Grocery Store.

Grocery Store Business Plan Template

Grocery store executive summary.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of grocery store business you are operating and the status; for example, are you a startup, do you have a grocery store that you would like to grow, or are you operating a chain of grocery stores.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the grocery store industry. Discuss the type of grocery store you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

GROCERY STORE BUSINESS PLAN OUTLINE

• Grocery Store Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Grocery Store Business Plan Summary

Other Helpful Business Plan Articles & Templates

500+ business plans and financial models

Furniture Store Business Plan PDF Example

• May 7, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful furniture store. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your furniture store’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a furniture store business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your furniture store concept into reality. Let’s dive in!

Our furniture store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the shop’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your furniture shop’s business concept, market analysis , management, and financial strategy.
• Store & Location: Describes the shop’s design, layout, and why its location is appealing to potential customers.
• Products & Pricing: Lists the types of furniture offered by your shop, including pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the furniture market.
• Key Trends: Highlights recent trends affecting the furniture sector.
• Key Competitors : Analyzes main competitors in the area and how your shop differs from them.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the furniture shop and their roles.
• Financial Plan: Projects the shop’s 5-year financial performance, including revenue, profits, and expected expenses.

Furniture Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your furniture store’s business plan, offering a concise overview of your store and its products. It should detail your market positioning, the range of furniture and home decor items you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your furniture store will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your store’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the store’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your furniture store’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

Store & location.

Briefly describe the furniture store’s physical environment, emphasizing its design, layout, and the welcoming atmosphere it offers to customers. Mention the store’s location, highlighting its accessibility and the convenience it offers to shoppers, such as proximity to popular shopping districts or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Supply & Products

Detail the range of furniture and related products offered, from basic home furnishings to specialized items like custom-made pieces, home accessories, or eco-friendly furniture. Outline your pricing strategy , ensuring it reflects the quality of products provided and matches the market you’re targeting. Highlight any promotions, financing options, or loyalty programs that provide added value to your customers, encouraging repeat business and customer loyalty.

Make sure to cover here _ Store & Location _ Supply & Products

Market Overview

Industry size & growth.

In the Market Overview of your furniture store business plan, start by examining the size of the furniture retail industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in personalized furniture solutions, sustainable and eco-friendly products, and innovative design styles. For example, highlight the demand for furniture that caters to specific lifestyle needs and preferences, alongside the rising popularity of environmentally conscious furniture stores.

Key Competitors

Then, consider the competitive landscape, which includes a range of furniture stores from high-end boutiques to budget-friendly options, as well as online furniture sales trends. For example, emphasize what makes your store distinctive, whether it’s through exceptional customer service, a unique range of products, or specialization in certain types of furniture. This section will help articulate the demand for furniture store services, the competitive environment, and how your store is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the furniture store , highlighting Strengths (such as quality craftsmanship and a diverse product range), Weaknesses (including high operational costs or intense competition), Opportunities (for example, an increasing trend in home improvement and interior design), and Threats (such as economic downturns that may decrease consumer spending on non-essential items).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, engaging social media presence, and community involvement. This could include collaborations with interior designers, staging partnerships with real estate companies, or hosting DIY furniture workshops to increase brand visibility and consumer engagement.

Finally, create a detailed timeline that outlines critical milestones for the furniture store’s opening, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose. This timeline should include key dates for product launches, seasonal sales campaigns, and potential entry into new markets or online expansion.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the furniture store’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the furniture store toward its financial and operational goals.

For your furniture store business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your furniture store’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your furniture store business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

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Here is a free business plan sample for a fruit and vegetable store.

Have you ever envisioned owning a bustling fruit and vegetable market that serves as a cornerstone of health in your community? Wondering where to start?

Look no further, as we're about to guide you through a comprehensive business plan tailored for a fruit and vegetable market.

Creating a solid business plan is crucial for any aspiring entrepreneur. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to turn your fresh produce venture into a thriving business.

To jumpstart your planning process with ease and precision, feel free to utilize our fruit and vegetable market business plan template. Our team of experts is also on standby to provide a free review and fine-tuning of your plan.

How to draft a great business plan for your fruit and vegetable store?

A good business plan for a fruit and vegetable market must cater to the unique aspects of this type of retail business.

Initially, it's crucial to provide a comprehensive overview of the market landscape. This includes up-to-date statistics and an exploration of emerging trends within the industry, similar to what we've incorporated in our fruit and vegetable market business plan template .

Your business plan should articulate your vision clearly. Define your target demographic (such as local residents, restaurants, or health-conscious consumers) and establish your market's distinctive features (like offering organic produce, exotic fruits, or locally-sourced vegetables).

Market analysis is the next critical component. This requires a thorough examination of local competitors, market dynamics, and consumer buying patterns.

For a fruit and vegetable market, it's imperative to detail the range of products you intend to sell. Describe your selection of fruits, vegetables, herbs, and any additional items you plan to offer, and discuss how these choices align with the preferences and needs of your customer base.

The operational plan is equally important. It should outline the location of your market, the layout of the retail space, your supply chain for fresh produce, and inventory management practices.

Given the nature of a fruit and vegetable market, it is vital to highlight the freshness and quality of your produce, your relationships with growers and suppliers, and adherence to health and safety standards.

Then, delve into your marketing and sales strategies. How do you plan to attract and keep customers coming back? Consider your approach to promotions, customer loyalty programs, and potential value-added services (like home delivery or a juice bar).

Incorporating digital strategies, such as an online ordering system or a robust social media presence, is also crucial in the modern marketplace.

The financial section is another cornerstone of your business plan. It should encompass the initial investment, projected sales, operating expenses, and the point at which you expect to break even.

With a fruit and vegetable market, managing waste and understanding the shelf life of products are critical, so precise planning and knowledge of your financials are essential. For assistance, consider using our financial forecast for a fruit and vegetable market .

Compared to other business plans, a fruit and vegetable market plan must pay closer attention to the perishability of inventory, the importance of a robust supply chain, and the potential for seasonal fluctuations.

A well-crafted business plan not only helps you to define your strategies and vision but also plays a pivotal role in attracting investors or securing loans.

Lenders and investors are keen on a solid market analysis, realistic financial projections, and a comprehensive understanding of the day-to-day operations of a fruit and vegetable market.

By presenting a thorough and substantiated plan, you showcase your dedication and readiness for the success of your venture.

To achieve these goals while saving time, you are welcome to fill out our fruit and vegetable market business plan template .

A free example of business plan for a fruit and vegetable store

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a fruit and vegetable market .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The fruit and vegetable market is an essential and robust component of the global food industry.

Recent estimates value the global fruit and vegetable trade at over 1 trillion dollars, with expectations for continued growth as consumers seek healthier eating options. In the United States, the fruit and vegetable industry contributes significantly to the economy, with thousands of markets and stores providing a wide range of produce to meet consumer demand.

These statistics underscore the critical role that fruit and vegetable markets play in not only providing nutritious food options but also in supporting local agriculture and economies.

Current trends in the fruit and vegetable industry indicate a shift towards organic and locally sourced produce, as consumers become more health-conscious and environmentally aware.

There is an increasing demand for organic fruits and vegetables, driven by the perception of better quality and concerns about pesticides and other chemicals. The local food movement is also gaining momentum, with consumers showing a preference for produce that is grown locally to support community farmers and reduce carbon emissions associated with transportation.

Technological advancements are influencing the industry as well, with innovations in vertical farming and hydroponics allowing for more sustainable and space-efficient growing methods.

Online grocery shopping and delivery services are expanding, making it easier for consumers to access fresh produce directly from their homes.

Additionally, the push for transparency in food sourcing continues to grow, with consumers wanting to know more about where their food comes from and how it is grown.

These trends are shaping the future of the fruit and vegetable market, as businesses strive to meet the evolving preferences and values of modern consumers.

Success Factors

Several key factors contribute to the success of a fruit and vegetable market.

Quality and freshness of produce are paramount. Markets that offer a wide variety of fresh, high-quality fruits and vegetables are more likely to build and maintain a dedicated customer base.

Diversity in product offerings, including exotic or hard-to-find produce, can differentiate a market from its competitors.

Location is also vital, as markets that are easily accessible to consumers will naturally attract more foot traffic.

Customer service is another important aspect, with knowledgeable and friendly staff enhancing the shopping experience and encouraging repeat visits.

Effective cost management and the ability to adapt to changing consumer trends, such as the demand for organic and locally grown produce, are crucial for the long-term viability of a fruit and vegetable market.

The Project

Project presentation.

Our fruit and vegetable market project is designed to cater to the increasing consumer demand for fresh, organic, and locally-sourced produce. Situated in a community-focused neighborhood, our market will offer a diverse selection of fruits and vegetables, emphasizing seasonal and organic options. We will partner with local farmers and suppliers to ensure that our customers have access to the freshest produce available, supporting sustainable agricultural practices and reducing our carbon footprint.

We aim to provide not just produce, but a holistic healthy eating experience by offering a range of complementary products such as herbs, spices, and artisanal condiments. Our market will be a hub for health-conscious consumers and those interested in cooking with the finest ingredients.

Our fruit and vegetable market is set to become a cornerstone in the community, promoting healthier lifestyles and fostering connections between local producers and consumers.

Value Proposition

The value proposition of our fruit and vegetable market lies in our commitment to providing the community with the highest quality fresh produce. We understand the importance of nutrition and the role that fruits and vegetables play in maintaining a healthy diet.

Our market will offer a unique shopping experience where customers can enjoy a wide variety of produce, learn about the benefits of incorporating more fruits and vegetables into their diets, and discover new and exotic varieties. We are dedicated to creating a welcoming environment where everyone can find something to enrich their meals and support their well-being.

By focusing on local and organic sourcing, we also contribute to the sustainability of our food systems and the prosperity of local farmers, aligning our business with the values of environmental stewardship and community support.

Project Owner

The project owner is an individual with a profound passion for healthy living and community engagement. With a background in agricultural studies and experience in the food retail industry, they are well-equipped to establish a market that prioritizes quality and freshness.

They bring a wealth of knowledge about the seasonality and sourcing of produce, and are committed to creating a marketplace that reflects the diversity and richness of nature's offerings. Their dedication to health, nutrition, and sustainability drives them to build a market that not only sells fruits and vegetables but also educates and inspires the community to embrace a healthier, more sustainable lifestyle.

Their vision is to create a space where the joy of fresh, wholesome food is accessible to all, and where the market serves as a vibrant gathering place for people to connect with their food and each other.

The Market Study

Market segments.

The market segments for this fruit and vegetable market are diverse and cater to a wide range of consumers.

Firstly, there are health-conscious individuals who prioritize fresh, organic produce in their diets for wellness and nutritional benefits.

Secondly, the market serves customers who are looking for locally-sourced and seasonal produce to support community farmers and reduce their carbon footprint.

Additionally, the market attracts individuals with specific dietary needs, such as vegans, vegetarians, and those with food sensitivities who require a variety of fresh produce options.

Culinary professionals, including chefs and caterers, represent another segment, seeking high-quality ingredients to enhance their dishes.

SWOT Analysis

A SWOT analysis of the fruit and vegetable market project highlights several key factors.

Strengths include a strong focus on fresh, high-quality produce, relationships with local farmers, and a commitment to sustainability and eco-friendly practices.

Weaknesses might involve the perishable nature of inventory, the need for constant supply chain management, and potential seasonal fluctuations in product availability.

Opportunities exist in expanding the market's reach through online sales and delivery services, as well as in educating consumers about the benefits of eating fresh and local produce.

Threats could include competition from larger grocery chains with more buying power, adverse weather affecting crop yields, and potential economic downturns reducing consumer spending on premium produce.

Competitor Analysis

Competitor analysis in the fruit and vegetable market sector indicates a varied landscape.

Direct competitors include other local markets, organic food stores, and large supermarkets with extensive produce sections.

These competitors vie for customers who value convenience, variety, and price.

Potential competitive advantages for our market include superior product freshness, strong community ties, exceptional customer service, and a focus on sustainable and ethical sourcing.

Understanding the strengths and weaknesses of these competitors is crucial for carving out a niche and ensuring customer loyalty.

Competitive Advantages

Our fruit and vegetable market's dedication to offering the freshest and highest quality produce sets us apart from the competition.

We provide a wide array of fruits and vegetables, including rare and exotic items, to cater to the diverse tastes and needs of our customers.

Our commitment to sustainability, through supporting local farmers and minimizing waste, resonates with environmentally conscious consumers.

We also emphasize transparency and education about the source and benefits of our produce, fostering a trusting relationship with our clientele.

You can also read our articles about: - how to open a fruit and vegetable store: a complete guide - the customer segments of a fruit and vegetable store - the competition study for a fruit and vegetable store

The Strategy

Development plan.

Our three-year development plan for the fresh fruit and vegetable market is designed to promote healthy living within the community.

In the first year, our goal is to establish a strong local presence by sourcing a wide variety of high-quality, seasonal produce and building relationships with local farmers and suppliers.

The second year will focus on expanding our reach by setting up additional market locations and possibly introducing mobile market services to access a broader customer base.

In the third year, we plan to diversify our offerings by including organic and exotic fruits and vegetables, as well as implementing educational programs on nutrition and sustainable agriculture.

Throughout this period, we will be committed to sustainability, community engagement, and providing exceptional service to ensure we become a staple in our customers' healthy lifestyles.

Business Model Canvas

The Business Model Canvas for our fruit and vegetable market targets health-conscious consumers and those looking for fresh, local produce.

Our value proposition is centered on offering the freshest, high-quality fruits and vegetables, with a focus on local and organic options, and providing exceptional customer service.

We will sell our products through our physical market locations and consider an online ordering system for customer convenience, utilizing our key resources such as our relationships with local farmers and our knowledgeable staff.

Key activities include sourcing and curating produce, maintaining quality control, and engaging with the community.

Our revenue streams will be generated from the sales of produce, while our costs will be associated with procurement, operations, and marketing efforts.

Access a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on community engagement and education.

We aim to highlight the health benefits of fresh produce and the environmental advantages of buying locally. Our approach includes community events, cooking demonstrations, and partnerships with local health and wellness organizations.

We will also leverage social media to showcase our daily offerings, share tips on healthy eating, and feature stories from our partner farmers.

Additionally, we plan to offer loyalty programs and seasonal promotions to encourage repeat business and attract new customers.

Risk Policy

The risk policy for our fruit and vegetable market focuses on mitigating risks associated with perishable goods, supply chain management, and market fluctuations.

We will implement strict quality control measures and develop a robust inventory management system to minimize waste and ensure product freshness.

Building strong relationships with a diverse group of suppliers will help us manage supply risks and price volatility.

We will also maintain a conservative financial strategy to manage operational costs effectively and ensure business sustainability.

Insurance coverage will be in place to protect against unforeseen events that could impact our business operations.

Why Our Project is Viable

We believe in the viability of a fruit and vegetable market that prioritizes freshness, quality, and community health.

With a growing trend towards healthy eating and local sourcing, our market is well-positioned to meet consumer demand.

We are committed to creating a shopping experience that supports local agriculture and provides educational value to our customers.

Adaptable to market trends and customer feedback, we are excited about the potential of our fruit and vegetable market to become a cornerstone of healthy living in our community.

You can also read our articles about: - the Business Model Canvas of a fruit and vegetable store - the marketing strategy for a fruit and vegetable store

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a fruit and vegetable market and our financial plan for a fruit and vegetable market .

Initial expenses for our fruit and vegetable market include costs for securing a retail space in a high-traffic area, purchasing refrigeration units and display equipment to maintain and showcase fresh produce, obtaining necessary permits and licenses, investing in a robust inventory management system, and launching marketing initiatives to attract customers to our location.

Our revenue assumptions are based on an in-depth analysis of the local market demand for fresh, high-quality fruits and vegetables, taking into account the increasing trend towards healthy eating and organic produce.

We expect sales to grow steadily as we establish our market's reputation for offering a wide variety of fresh and locally sourced produce.

The projected income statement outlines expected revenues from the sale of fruits and vegetables, cost of goods sold (including procurement, transportation, and storage), and operating expenses (rent, marketing, salaries, utilities, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our fruit and vegetable market.

The projected balance sheet will reflect assets such as refrigeration and display equipment, inventory of fresh produce, and liabilities including any loans and operational expenses.

It will provide a snapshot of the financial condition of our market at the end of each fiscal period.

Our projected cash flow statement will detail all cash inflows from sales and outflows for expenses, helping us to predict our financial needs and ensure we have sufficient funds to operate smoothly.

The projected financing plan will outline the sources of funding we intend to tap into to cover our initial setup costs and any additional financing needs.

The working capital requirement for our market will be carefully managed to maintain adequate liquidity for day-to-day operations, such as purchasing fresh stock, managing inventory, and covering staff wages.

The break-even analysis will determine the volume of sales we need to achieve to cover all our costs and begin generating a profit, marking the point at which our market becomes financially sustainable.

Key performance indicators we will monitor include the turnover rate of our inventory, the gross margin on produce sales, the current ratio to evaluate our ability to meet short-term obligations, and the return on investment to gauge the profitability of the capital invested in our market.

These metrics will be instrumental in assessing the financial performance and overall success of our fruit and vegetable market.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a fruit and vegetable store .

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Clothing Store Business Plan

Passionate about running your own clothing store and ready to turn your fashion fantasy into a thriving reality?

Well, buckle up for an exciting venture!

Huge market size, entrepreneurial freedom, potential profitability, and growth opportunities make starting a clothing store an excellent choice for budding entrepreneurs.

However, entering the marketplace without proper planning can expose your business to risk.

Surprisingly, creating a solid business plan for your clothing store is your first big step to elevate your fashion dream to the next level. And guess what; we are here to help you with that!

Our well-written clothing store business plan template is the go-to guide that shows you all the key elements you need for a successful and professional business plan.

So, let’s dive in and bring your clothing boutique vision to life!

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

Key Takeaways

• Draft a clear executive summary that presents your clothing store’s essence, goals, marketing plan, and unique selling points..
• Dive deep into the fashion industry to analyze emerging trends and target customers’ needs & shopping habits.
• Share your store’s history, mission statement, legal structure, and key employees to define a compelling business narrative.
• Clearly summarize the range of clothing services and accessories to showcase any unique or specialized store offerings.
• Use SWOT analysis tools to assess your clothing store’s strengths, weaknesses, opportunities, and threats for informed decision-making.
• Craft effective marketing strategies to highlight what makes your clothing store unique to attract and retain customers.
• Develop detailed financial projections that show your clothing store’s financial health & expected growth trajectory to draw angel investors.

How to Write a Clothing Store Business Plan?

1. draft an executive summary.

An executive summary is the first section of the business plan intended to provide an overview of the whole clothing store business plan. Generally, it is written after the entire business plan is ready.

Start your executive summary by introducing your idea behind starting a clothing store and explaining what it does. Give a brief overview of how your business will be different from the rest.

Concisely describe what products or services a customer can expect from your clothing store. And incorporate brief information mentioning the quality measures you implement for customer satisfaction.

Not only that, describe the target market in brief, and explain how your clothing business meets its needs. Also, name all the key members of your team with their duties, responsibilities, and qualifications.

You can provide financial projections for the store’s initial years of operation. Include capital or investment requirements, startup costs, projected revenues, and profits.

After briefly explaining your business plan, end your summary with a call to action, inviting potential investors or readers to the next meeting if they are interested in your business.

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2. Provide a Business Overview

Now, it’s time to craft a business overview section that provides a more thorough description of your clothing store.

Depending on your business’s details, you’ll need some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include.

Start this section by providing all the basic information about your business like:

• Mention the name and type of your clothing business. It can be a clothing retail business, online e-commerce website, vintage clothing store, children’s clothing, or women’s/men’s clothing store.
• Describe the company structure of your business, whether it is a sole proprietorship, partnership firm, limited liability company, or something else.
• Highlight the physical location of your store and why you selected that place.

You can refer below given example from Upmetrics to draft this subsection:

Next, describe the owners of your clothing business and mention their roles in running it. Emphasize the percentage of shares owned and how each owner aids in the business.

Add a mission statement summarizing your clothing business’s objectives and core principles. This statement needs to be memorable, clear, and brief.

It’s crucial to convey your aspirations and your business goals. So include the vision of where you see your business in the near future and if you plan on scaling or expanding your business to another city or state.

Additionally, outline your clothing store’s history and how it came to be in its current position. Add some intriguing details, especially if you have any achievements or recognitions till now for your incredible services.

3. Conduct Thorough Market Analysis

After that, take some time to go further and draft the industry and market analysis section of the clothing boutique business plan.

This section provides a clear understanding of the market in which your store will run along with the target audience, competitors, and growth opportunities.

Try to mention the following essential components in this section:

Customer analysis

Conduct market research and identify your target market to define your ideal customer. Determine your target customer’s demographics, geographic location, or psychographic attributes.

Know more about your ideal customer and clarify the services they prefer: luxury clothing, vintage clothing, women’s clothing, etc. Here is a written example from our sample business plan:

Our primary audience comprises [men and women aged 20-40], emphasizing those who resonate with [modern, sustainable, and high-quality fashion].

While the broader clothing market serves various niches, our ideal customer is someone who seeks [a blend of luxury and vintage clothing], especially those pieces that strike a balance between contemporary elegance and timeless charm.

This demographic typically belongs to the [upper-middle-class socio-economic bracket], values quality over quantity, and is keen on making eco-conscious purchases.

Market size and growth potential

A thorough industry analysis unveils necessary information about the clothing industry and the competition in the local market.

Recently, the United States clothing market is experiencing a surge in demand for sustainable and ethically-produced clothes. This market is expected to show a volume growth of 1.6% in 2024.

So, highlight the market size, trends, growth potential, competitive advantage, and how your business is different from the rest.

Competitive analysis

It is a very important part of market research that helps you evaluate the competitive landscape. So, conduct a SWOT analysis to find your business position.

Identify and analyze all other clothing stores in your area, including direct and indirect competitors. Most likely, direct competitors can be online clothing stores while local businesses who sell similar items to you can be indirect competitors.

Provide a quick overview of each competitor and evaluate their strengths, weaknesses, pricing strategies, and the customers they serve. For example,

From that, Identify the gaps in the market and document competitive advantage, including better pricing plans and excellent customer service that set you apart from other clothing stores.

Market trends

Understanding the fashion industry trends is crucial for placing your clothing business for success. So, analyze current and emerging trends in your industry, such as technological changes or customer preferences.

Explain how your business will cope with all the trends. For example, influencer and social media marketing is rising, so explain how you plan on dealing with that.

Regulatory environment

Working within the clothing sector necessitates adherence to a range of regulations, so don’t forget to describe any regulations or licensing requirements. It can be business registration, sales tax, environmental and employment regulations, etc.

Some additional tips for writing the market analysis section of your business plan:

• Use various sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Propose Your Products And Services

A clothing store business plan’s product and services section should describe the specific services and products offered to customers.

Create a list of the products your clothing store will sell, men’s or women’s apparel, luxury clothing, kids’ wear, etc. Clothing customizations and online delivery can be some of your services.

Describe each product and service as given in the below example written using our powerful AI writing assistant :

Doing this can provide a detailed illustration of what it entails, the time required, and the qualifications of the professionals who will provide it. 

You should also discuss the strategies you will implement for clothing procurement and inventory management as well as any tools or systems you will use for tracking inventory levels and sales.

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused.

By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Outline Sales And Marketing Plan

Writing a comprehensive sales and marketing plan means developing a list of strategies you will use to attract and retain your clients and generate revenue.

So, highlight what makes your business shine in a bursting clothing market. Here are some key elements to include in your clothing line business plan:

Unique Selling Proposition (USP)

Clearly define your business’s unique selling propositions, which can be your products or services, brand reputation, unique designs, customizations, and so on.

Determine what sets your business apart from the competition and what benefits your target market. For instance,

Fashion Forward ‘s strength lies not just in the products it provides but also in the experience it curates. Our USPs include:

• High-Quality Clothing: Each product undergoes stringent quality checks, ensuring longevity and comfort.
• Sustainable Practices: From sourcing to delivery, sustainability is woven into our business model.
• Unique Designs: Collaborations with [local artisans and designers] offer exclusive collections found nowhere else.
• Personalized Customizations: Bespoke tailoring and customization options cater to individual preferences and fit.
• Brand Reputation: Built on trust, quality, and unmatched service, our brand stands as a testament to fashion excellence.

Pricing strategy

Develop a pricing strategy that is competitive and affordable yet profitable. Consider offering promotions, discounts, or packages for your clothing business to attract new customers.

Sales strategies

Mention your sales strategy as in—creating customer loyalty programs, planning contests, offering seasonal discounts, etc.

Customer retention

Describe how your business will retain customers and build loyalty, such as through loyalty programs, special events, or personalized service.

Marketing strategies

Develop a marketing strategy that includes a mix of online and offline marketing efforts. Consider social media, email marketing, content marketing, brochures, print advertising, and events.

Refer to the below sample to draft your marketing approach:

Overall, be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Outline the Business Operations Plan

Next, provide an insider’s look into the daily operations of your clothing retail business. This section offers a clear picture of your business processes and procedures involved in operating a business.

When writing the operations plan section, try to include below subsections:

Hiring plan

Tell the staffing requirements of your business, including the number of employees needed, their qualifications, and the duties they will perform.

Also, mention the perks you will provide to your employees.

For example, a sales associate is responsible for assisting customers with their purchases, suggesting products, providing customer service, etc.

Operational process

Outline the processes and procedures you will use to run your clothing business. It includes inventory management, sales and marketing, customer service, financial management, etc.

Software & Technology

Describe the software and technologies used in your business operations depending on your services, such as a POS (point-of-sale) system, accounting software, e-commerce platform(optional), tailoring and alteration equipment, etc.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your business.

7. Introduce Your Management Team

The management team section provides an overview of the individuals responsible for running the clothing store and highlights that your business has the fittest team.

Give a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Start with your management team’s key members including the owners, senior management, sales & marketing managers, sales associates, accountants, and other people involved in the business operations.

Mention their roles & responsibilities, education, professional background, and relevant experience in the industry. Here is an illustration of a management team using Upmetrics:

Establish the organizational structure of the management team, including reporting lines and how decisions will be taken. Doing so is very important to avoid misunderstandings once the clothing store is up and running.

Not only that, you can describe your compensation plan for the management team and staff, including salaries, bonuses, and other benefits.

If you have a board of advisors for your fashion business, and mention them along with their roles & experience. They would act like mentors to your retail store and help you with strategic advice.

8. Prepare Financial Plan

When writing the financial plan section of a clothing line business plan, it’s important to provide a comprehensive overview of your financial forecasts for the first few years of your clothing store business.

So, create all the below-mentioned financial statements to reflect total expenditures, profit, and cash flow. It will provide a clear understanding of how you manage money.

Profit & loss statement (Income statement)

Create a projected profit and loss statement that describes the expected revenue, cost of products sold, and operational costs. Your business’s anticipated net profit or loss should be computed and included.

Here is an illustration of a unit sold v/s revenue for a family clothing store business using Upmetrics:

Cash flow statement

A proper cash flow statement helps you notice how much money you need to start a clothing store business or grow an existing one. So, estimate your cash inflows and outflows for the first few years of operation.

It should include cash receipts from clients, vendor/ clothing retailers payments, loan payments, and any other cash inflows and outflows.

Balance sheet

The balance sheet shows the financial future of your store business. Prepare a projected balance sheet, which shows the business’s assets, liabilities, and equity.

Break-even point

The point at which your store will break even or generate enough revenue to cover its operating costs. This will help you understand how much revenue you need to generate to make a profit.

Financing needs

Estimate how much funding you will need to start and operate your store. It should include short-term and long-term financing needs. Consider the funding resources, including bank loans, angel investors, crowdfunding, or personal savings.

However, calculating all the financial statements from scratch can be overwhelming. But don’t worry; use our financial forecasting tool .

All you have to do is provide all the details you have and let the tool calculate financial factors, and create visual reports for you. No manual data work, recalling Excel formulas, or preparing graphs—nothing.

Download Free Clothing Store Business Plan PDF

Need help writing your clothing store business plan from scratch? Well, here you go; download our clothing store business plan pdf now and get started.

This modern, investment-ready business plan template is specially designed for your clothing stores. It will provide an idea for writing a successful clothing boutique business plan without missing any essential components.

Import data into your editor and start writing your clothing boutique business plan!

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Start Preparing Your Business Plan with Upmetrics

Finally! Now, you know how to write your clothing store business plan with the help of our sample business plan guide. So, you are a step closer to kickstarting your business with confidence.

Whether you are an experienced entrepreneur or a beginner, Upmetrics provides valuable insights and cutting-edge tools to build professional business plans that perfectly align with your objectives.

Don’t wait; sign up now and start preparing your business plan with the #1 business planning software !

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Frequently asked questions, what types of insurance are needed for a clothing store.

There are several types of insurance you will need for your clothing store:

• General Liability Insurance
• Commercial Property Insurance
• Business Interruption Insurance
• Theft Insurance
• Workers’ Compensation

How can I create an effective online presence for my clothing store?

5 most effective ways to create an effective online presence for your clothing store:

• Invest in a user-friendly e-commerce website or online store.
• Use social media platforms to showcase your offerings.
• Optimize your website for search engines and grow your online visibility.
• Draft effective content, such as fashion blogs or style guides.
• Embrace celebrity endorsement for your brand.

What are the key financial considerations for opening a clothing store?

Consider below financial aspects:

• Estimate startup costs (inventory, store setup, and initial marketing)
• Operating expenses (rent, utilities, staffing, and ongoing marketing costs)
• Revenue projections
• Break-even analysis

What sections should my clothing store business plan include?

A comprehensive clothing boutique business plan should cover:

• Executive summary
• Business overview
• Market Analysis
• Product and service offerings
• Sales and marketing strategies
• Management team
• Business operations
• Financial plan

What are the legal and regulatory considerations for opening a clothing store?

There are several legal and regulatory considerations for opening a clothing store:

• Business registration
• Necessary license and permits
• The legal structure of your clothing store
• Employment rules
• Local, state, and federal regulations

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Safe Current

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Safe Current is small business unit of The Cleveland Illuminating Company (TCIC), and electric utility. Safe Current was formed and will be lead by Brian Henderson.

Safe Current has identified three key factors that will be instrumental to its sustainability:

• Ensure 100% customer satisfaction: Repeat customers and customer referrals are valuable.
• Design and sell meaningful and valuable power protection products.
• Design and implement strict financial controls. This is very important because although Safe Current is a small business unit of TCIC, they must be a stand alone entity financially and and yet they have financial and accounting responsibilities to the shareholders of TCIC.

Products Safe Current will offer two main products, surge arrestors and surge protectors. These products are made by a contract manufacturer and sold under the Safe Current brand name:

• Surge Arrestors : This is a piece of equipment that is mounted on the outside of a house or business near the meter that offers protection from external electrical surges.
• Surge Protectors : This is a piece of equipment that protects individual or groups of appliances against internal electrical spikes. All of Safe Currents protectors are of industrial grade.

Management Brian has an MBA from Case Western Reserve University and has experience working for the large telecom ATT as an assistant project manager, and Allegheny Power working in the value added services department. Safe Current has been forecasted to achieve impressive sales for years two and three, with correspondingly respectable net profit.

1.1 Objectives

• To develop a profitable product for TCIC that is unregulated from the core power generation business services.
• To become profitable within one year.
• To use this business as a successful model for future ventures.

1.2 Mission

To develop a family of surge protectors and arrestors for consumers that offer safety and value. Safe Current will leverage the strength of The Cleveland Illuminating Company to help build brand recognition. All customer’s expectations will be exceeded with their innovative, useful products and complete customer satisfaction is guaranteed.

1.3 Keys to Success

• Offer every customer 100% satisfaction.
• Design and sell meaningful, valuable, power protection products.
• Design and employ strict financial controls.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Safe Current is an unregulated subsidiary of The Cleveland Illuminating Company that sells direct to businesses and consumers. It will be operated as a stand alone business leveraging the existing resources and goodwill of TCIC.

Safe Current will be located on site at TCIC, using an office within the complex and also sharing TCIC’s computer network connection and phone connections. Safe Current will operate their own customer service call department. Safe Current will use TCIC’s existing call center for sales calls and TCIC’s existing billing system as well as their order fulfillment and shipping departments. Safe Current will pay a flat rate (10%) for these services.

The Cleveland Illuminating Company has chosen to create Safe Current as a means of increasing the rate of return to shareholders outside the government regulated rates available to electric utilities.

2.1 Company Ownership

Safe Current is a wholly owned subsidiary of TCIC.

2.2 Start-up Summary

Safe Current will leverage the existing resources of TCIC and pay a set overhead fee for the resources used. Equipment that will be needed as follows:

• Five computer stations, one laser printer; Microsoft Office, Access, and proprietary software used by TCIC; network connection to TCIC.
• Five office furniture setups.
• A five extension phone system.

Market Analysis Summary how to do a market analysis for your business plan.">

Safe Current has identified three distinct market segments that they will target. The first segment is family home owners, typically with children, and the second is single home owners.

These two segments have been chosen because families with children typically have a large number of electronic devices and the upper income single home owners often adopt technology using lots of gadgets in their home.

The third segment is commercial businesses that have equipment they want protected. Competition is very limited for surge arrestors as they require electric utility installation. There is some competition with the surge protectors, however the competitive products are of a consumer level of quality and protection, different from Safe Current’s products which offer industrial levels of protection.

3.1 Market Segmentation

Safe Current has segmented the market into three distinct groups.

Family home owners This segment generally has electronic equipment and lives in middle- to high-end homes.

• 69% have at least one child.
• The median household income is $77,000.
• Eat out 2.3 times a week.
• 58% of the families have two incomes.
• 63% have cable TV.
• 49% have a broadband Internet connection.

Single home owners This segment is a single person who owns their own home. They are generally professionals who often use a lot of electronic technology.

• Ages 25-40.
• 71% are professionals.
• The median household income is $62,000.
• Eat out 2.7 times a week.
• 72% have cable TV.
• 71% have a broadband Internet connection.

Commercial sales This segment is small to mid-size businesses that have expensive electronic equipment that they need protected. Commercial sales are not industry specific. All businesses, regardless of type, have pieces of equipment that can be protected.

3.2 Target Market Segment Strategy

Safe Current is targeting these groups since all tend to have many pieces of electronic equipment all of which are vulnerable to power surges.

While most home owners insurance offers some level of compensation for damage, deductibles are typically high enough that most people do not make claims. Both segments are already customers and aware of TCIC’s reputation for safety, reliability and operational excellence, making it easy to solicit their business.

3.3 Industry Analysis

Safe Current operates selling two similar service devices, surge arrestors and surge protectors. While these products are similar, they have serve different purposes.

The surge arrestors are a product that can only be offered by a utility so it is typically only sold and installed as a package by the utility.

The surge protectors operate within the more general consumer product segment as evidenced by the fact that surge protectors can be found by a wide range of retailers such as hardware stores, do-it-yourself type stores, and computer and electronic retailers.

It should be noted that Safe Current’s parent company, The Cleveland Illuminating Company is an electric utility and is therefore operating within a regulated industry. Current regulation by the public utility commission (PUC) dictates that the rate of return is capped at 10.5% for utility activities.

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3.3.1 Competition and Buying Patterns

Surge arrestors Safe Current does not face any real competition for the arrestors due to the installation requirement of the electric utility.

While there are four current vendors that sell the actual arrestor equipment, it is far more expensive to buy the equipment and then pay the utility for installation than buying the package (product and installation) directly from the utility.

Surge protectors Safe Current faces general competition from several sources. This is qualified as general competition since the products typically sold (90% of the time) are of consumer quality versus the industrial quality that Safe Current offers.

Due to TCIC’s direct contacts with electrical component manufacturers and their sheer buying scale/power, Safe Current is able to offer high-quality industrial grade products for prices that are similar to the consumer units. Competitors in this segment include:

• Hardware stores
• Mass merchants
• Do-it-yourself stores
• Computer retailers
• Electronic retailers

3.4 Products

Safe Current will offer a family of surge arrestors and surge protectors for consumers. A surge protector protects appliances plugged into it against spikes in voltage.

A surge arrestor or “whole house surge protector” protects all circuits of a house from a surge in current emanating from outside the building. These products will protect consumers and their sensitive electric and electronic appliances from power surges or transient voltage.

A power surge is an increase in voltage significantly above the designated level of flow of electricity. If a surge or spike is high enough it will inflict serious damage, just like applying to much water pressure through a hose. Too much will case the hose to burst. The same thing happens when there is too much electrical pressure through a wire, the wire “bursts.”

Surge protectors work by diverting the extra electricity into the outlet’s grounding wire. A surge arrestor offers the same protection, however, the protection occurs before the current comes into the home. There are several sources of surges.

The most familiar source is lightning. When lightning strikes near a power line, the electrical energy creates a boost of electrical pressure. A surge arrestor is the best form of protection against lightning as a lightning surge will overpower most surge protectors.

A more common source is the operation of high power electrical devices such as refrigerators and air conditioning units. These appliances cause spikes when their compressors or motors are turned on and off, creating sudden, brief demands for power and upsetting the flow of the electrical voltage.

These types of surges can be protected only by surge protectors because the spike occurs within the home and not from the electrical grid.

The last main source of surges come from the utility company’s equipment. The complex system of equipment that brings electrical power from the grid into the home may have points of failure that can cause uneven power transmissions.

A combination of a surge arrestor and surge protectors on major or expensive electric/electronic components can significantly decrease the possibility of surge/spike damage.

Safe Current will offer two main products, surge arrestors and surge protectors. These products are made by a contract manufacturer and sold under the Safe Current brand name:

Safe Current has chosen to outsource production because 1) it has numerous relationships with contract manufacturers that can make the products for far less than they can, 2) production would create significant capital costs which are truly unnecessary. The beauty of this business model is the usage of contract manufacturers and the leveraging of TCIC resources.

Strategy and Implementation Summary

Safe Current has developed a targeted strategy that allows them to leverage their competitive edge and quickly gain market penetration. Safe Current’s competitive edge is its ability to use The Cleveland Illuminating Company’s utility status for the sale of house surge arrestors and protectors.

The marketing strategy will concentrate on the ability to offer supreme, inexpensive protection for an entire family’s stable of electric and electronic appliances. This campaign will be communicated through various methods and will focus on the product offerings coming from the safe, established TCIC, an icon of Cleveland for over 50 years. Please review the following sections for a more detailed analysis.

4.1 Competitive Edge

Safe Current’s competitive edge is their ability to leverage the huge advantage of being aligned with The Cleveland Illuminating Company, an electric utility serving the Cleveland market for over 50 years. TCIC has spent a long time developing brand equity and Safe Current will be able to tap into this equity immediately.

Safe Current will also be able to use TCIC’s extensive vendor connections and buying power. The last component of their competitive edge is Safe Current’s exclusive ability to install house arrestors. This last edge is a sustainable edge since no other company will ever be able to make arrestor installations, a function of the regulated power industry.

4.2 Marketing Strategy

Safe Current’s marketing strategy will seek to communicate the idea that the products that they offer are in effect cheap insurance against large electric and electronic appliance damage or losses.

By proactively purchasing Safe Current’s products, customers are able to protect against loss and damage of all of their expensive appliances. While many homeowners probably have some sort of insurance, deductibles are often prohibitively high, making a claim for damage to one or a couple appliances not worth the money. Safe Current will use several forms of communication for this marketing campaign:

• Inserts in Bills : Colorful inserts will be added into the bills of TCIC customers. Currently, the customers are receiving a monthly bill from TCIC and inserts are an inexpensive, yet powerful way of reaching the customers.
• Website : Safe Current will have a website which will be comprehensive in describing the different product offerings as well as allowing the customer to order directly from the site.
• Direct Mail : Another advantage of the relationship Safe Current has with TCIC is the ability to use their customer database. This allows Safe Current to generate a targeted list of customers that they can send product information to.

4.3 Sales Strategy

This idea is evidenced by the fact that almost every time that a consumer reaches for a light switch the light goes on. Sure there are interruptions, often weather related, that interrupt the electrical service, but those interruptions are reconnected quite fast.

The utility is stable and safe and is always working to serve the customer. These electricity related products will clearly leverage the brand equity developed by TCIC over the last five decades.

4.3.1 Sales Forecast

The sales forecast has been developed as a forecast and tracking tool to provide the company with realistic sales goals as well as a way to verify progress. The forecast has been developed as a conservative estimate, not an aggressive sales promise.

By adopting a conservative forecast, Safe Current increases the likelihood of reaching sustainable sales growth. The following table and charts provide more detailed information about the sales cycle, both from a temporal viewpoint and a product perspective.

4.4 Milestones

Safe Current has identified several quantifiable, reachable milestones that will serve as goals that the entire organization will work toward in order to make Safe Current a sustainable business.

The following table details the specific milestones as well provides a temporal timetable for expected completion dates. Following the table is a chart for a graphical representation of the information.

Web Plan Summary

Safe Current’s website will be used as both a marketing and sales tool. It will take on marketing responsibilities as one of the communication methods used to raise awareness regarding Safe Current’s product families. Extensive product information will be included on the site in an easy to use format.

The site will also be used as a sales tool, allowing customers to purchase the products as well as set up installation appointments for the surge arrestors. Allowing the website to offer sales support will provide consumers with a convenient way to purchase the products as well as provide Safe Current with a low-cost sales program that does not require a live sales support agent. The site will periodically be updated to encourage customers to make repeat visits.

5.1 Website Marketing Strategy

Safe Current will market their website in two primary ways:

• Search engine submission : As search engines become more and more powerful, a large number of Internet users use them to find relevant information on the Internet. Safe Current will submit their site to many popular engines ensuring that their site comes up high on the list of hits.
• URL reference in all printer material : The Web address, www.safecurrent.com, will be printed on all material that Safe Current uses encouraging consumers to check out the site.

5.2 Development Requirements

The website will be developed by TCIC’s internal Web development team for the price of $5,000.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Brian Henderson received a Bachelors of Science in business and marketing from the University of Pittsburgh and an MBA from Case Western Reserve University. Upon graduation from the MBA program, Brian went to work for ATT for three years. At ATT Brian was an assistant project manager, selling telephone accessories using direct marketing techniques. After his ATT experience, Brian worked for Allegheny Power, a Pennsylvania-based electric utility. At Allegheny Power Brian was again an assistant project manager in charge of selling commercial businesses value added services. Brian spent three years at Allegheny before joining The Cleveland Illuminating Company as a Project Manager.

6.1 Personnel Plan

As a side business unit of TCIC, Safe Current will have only a few employees. Billing, sales, and order fulfillment will be accomplished using TCIC’s existing organization, paying a 10% fee for these services. The employees/positions that Safe Current will use include:

• Project Manager : Brian will take on a wide range of functions including business development, product procurement, management, and sales.
• Customer Service Agents (4): These positions will assist customers calling about Safe Current’s products. Additionally, at times the employees may help Brian with other activities.

Financial Plan investor-ready personnel plan .">

The following sections outline important financial information.

7.1 Important Assumptions

The following table details important financial assumptions.

7.2 Break-even Analysis

The Break-even Analysis indicates what will be needed in monthly revenue to reach the break even point.

7.3 Projected Cash Flow

The following chart and table displays projected cash flow.

7.4 Projected Profit and Loss

The following table presents projected profit and loss.

7.5 Business Ratios

The following business ratios detail both ratios specific to Safe Current as well as ratios specific to the general industry. Variances in Safe Current’s ratios relative to the industry’s can be explained by the fact that Safe Current is able to leverage the valuable assets of TCIC, an electric utility, to achieve above market margins. As a small business unit of an electrical utility it is normal for business ratios to be different from the competition.

7.6 Projected Balance Sheet

The following table details the projected balance sheet.

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